Update – United Kingdom group action

BHP Group Limited
12 July 2024
 

BHP Group Limited

Exchange release                                                 

12 July 2024

 

Update - United Kingdom group action

BHP announces that it has entered into an agreement with Vale S.A (Vale) in relation to group action proceedings in the United Kingdom in respect of the Fundão Dam failure in Brazil.

The Fundão Dam was owned and operated by Samarco, a non-operated joint venture between BHP Billiton Brasil Ltda (BHP Brasil) (a subsidiary of BHP Group Limited) and Vale. Each of BHP Brasil and Vale holds 50 per cent of Samarco.

BHP Group Limited and BHP Group (UK) Limited (BHP) are defendants to a group action claim in the English High Court, brought by over 600,000 claimants seeking damages in relation to the Fundão Dam failure in 2015 (the English Proceedings). BHP does not consider that it is liable to the claimants in the English Proceedings and will continue to defend the English Proceedings. BHP believes the English Proceedings are unnecessary because they duplicate matters already covered by the existing and ongoing work of the Renova Foundation and legal proceedings in Brazil.

In March 2024 a new claim was filed against Vale and the Dutch subsidiary of Samarco in the Netherlands on behalf of approximately 78,000 Brazilian claimants for compensation relating to the Fundão Dam failure (the Netherlands Proceedings).  BHP is not a defendant in the Netherlands proceedings.

BHP, BHP Brasil and Vale have entered into an agreement for BHP and Vale to each pay 50% of any amounts potentially payable to the claimants in the English Proceedings, the Netherlands Proceedings and other proceedings in Brazil covered by the agreement without any admission of liability for these proceedings. The agreement reinforces the terms of the Framework Agreement entered into in 2016 which require BHP Brasil and Vale to each contribute 50% to the funding of the Renova Foundation for compensation of persons impacted by the Fundão Dam failure where Samarco is unable to contribute that funding. 

BHP brought a contribution claim against Vale in December 2022 because the English Proceedings were not brought against Vale. The contribution claim contends that if BHP's defences are not successful and it is ordered to pay damages to the claimants in the English Proceedings, Vale should contribute to any amount payable. BHP will withdraw the contribution claim against Vale as it is no longer necessary given the agreement with Vale.

BHP Brasil remains committed to continue supporting the local remediation efforts in Brazil through the Renova Foundation. Those efforts have already provided approximately US$3.5 billion in compensation and direct financial aid in relation to the dam failure to approximately 430,000 people to 31 May 2024.

 

 

 

Authorised for release by Stefanie Wilkinson, Group General Counsel and Group Company Secretary



 

Contacts

Media

media.relations@bhp.com

Investor Relations

investor.relations@bhp.com

Australia and Asia

Gabrielle Notley

+61 411 071 715

Australia and Asia

John-Paul Santamaria

 +61 499 006 018

Europe, Middle East and Africa

Neil Burrows

+44 7786 661 683

Europe, Middle East and Africa

James Bell

+44 7961 636 432

Americas

Renata Fernandaz

+56 9 8229 5357

Americas

Monica Nettleton

+1 (416) 518-6293

BHP Group Limited

ABN 49 004 028 077

LEI WZE1WSENV6JSZFK0JC28

Registered in Australia

Level 18, 171 Collins Street

Melbourne

Victoria 3000 Australia

Tel: +61 1300 55 4757 Fax: +61 3 9609 3015

BHP Group is headquartered in Australia

 

bhp.com

 

 

 

 

 

 

 

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
UK 100

Latest directors dealings